Bitcoin’s recent surge of over 6% was triggered by Federal Reserve Chairman Jerome Powell’s announcement of a potential 25bps rate cut at the next meeting on September 18. This unexpected news has injected fresh momentum into the market, with Bitcoin prices experiencing increased volatility. Traders are now eagerly anticipating further price appreciation as they monitor the impact of the Fed’s new stance on the cryptocurrency’s performance.
Amidst the market uncertainties, on-chain data from CryptoQuant is shedding light on a potential bullish phase for Bitcoin. The data reveals a significant trend where Bitcoin exchange reserves on centralized platforms have plummeted to an all-time low. This decline, from over 2.75 million to approximately 2.67 million in just 30 days, suggests a supply shock scenario where the demand for Bitcoin outweighs its availability on exchanges. As the supply of BTC for trading diminishes, the likelihood of a price surge increases, signaling a positive outlook for Bitcoin’s price trajectory.
Currently trading above $63,000, Bitcoin is poised to break past the critical $65,000 mark as it gains momentum in the market. Holding above the crucial daily 200 Moving Average (MA) at $64,100 is crucial for maintaining the uptrend and signaling bullish strength. To confirm its bullish structure, Bitcoin must hold above the $57,500 level, with ideally staying above the daily 200 Exponential Moving Average (EMA) at $59,538. These key levels are essential for sustaining the upward momentum and instilling confidence among traders and investors in the market.
The convergence of declining Bitcoin exchange reserves and the Fed’s policy adjustment has fostered a sense of optimism among investors. Many are anticipating a potential Bitcoin rally in the coming months, buoyed by the promising indicators and positive trends observed in the market. With the market closely monitoring Bitcoin’s performance and trajectory, all eyes are on the cryptocurrency as it navigates through the current landscape and sets the stage for a potential bullish run in the near future.
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